The signs are there. Interest rates are rising, gas prices are surging, and the deficit is blowing up. A recession is right around the corner. This is the time to start thinking lean, and avoid any new long-term liabilities. For self-employed people this is especially important. People who own their own business are by definition, optimists. If they weren’t, they wouldn’t be self-employed. Optimistic people always think things will be great in the future. Latinos are optimists. I’m an optimist. However, this can be part of the reason we lag the population in terms of wealth. Here are a few tips that can help you prepare for the recession:
- Pay off credit cards and reduce your fixed liabilities
- Start saving more
- Remain liquid – if you have all of your wealth in real estate, you could be vulnerable, especially if you have a mortgage
- Avoid any new liabilities
- Attend conferences and network more – new business opportunities (or jobs) are out there
Conversely, fortunes are made during recession. Assets and companies are sold cheap during recessions and fortunes are made when the economy turns back around. Remember, cash is king. Lets get it right this time!